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To amend sections 123.01, 1531.06, 1531.33, and
3345.181, to enact sections 131.50, 1503.012,
1509.70, 1509.71, 1509.72, 1509.73, 1509.74,
1509.75, 1509.76, 1509.77, 1509.78, and 1541.26,
and to repeal sections 5119.40, 5120.12, and
5123.23 of the Revised Code to create the Oil and
Gas Leasing Commission, to establish a procedure
for leasing land owned or under the control of
state agencies for oil and gas production in order
to provide funding for capital costs for the
agencies, and to exclude nature preserves from
drilling.

Sec. 123.01. (A) The department of administrative services,
in addition to those powers enumerated in Chapters 124. and 125.
of the Revised Code and provided elsewhere by law, shall exercise
the following powers:

(1) To prepare, or contract to be prepared, by licensed
engineers or architects, surveys, general and detailed plans,
specifications, bills of materials, and estimates of cost for any
projects, improvements, or public buildings to be constructed by
state agencies that may be authorized by legislative
appropriations or any other funds made available therefor,
provided that the construction of the projects, improvements, or
public buildings is a statutory duty of the department. This
section does not require the independent employment of an
architect or engineer as provided by section 153.01 of the Revised
Code in the cases to which that section applies nor affect or
alter the existing powers of the director of transportation.

(2) To have general supervision over the construction of any
projects, improvements, or public buildings constructed for a
state agency and over the inspection of materials previous to
their incorporation into those projects, improvements, or
buildings;

(3) To make contracts for and supervise the construction of
any projects and improvements or the construction and repair of
buildings under the control of a state agency, except contracts
for the repair of buildings under the management and control of
the departments of public safety, job and family services, mental
health, developmental disabilities, rehabilitation and correction,
and youth services, the bureau of workers' compensation, the
rehabilitation services commission, and boards of trustees of
educational and benevolent institutions and except contracts for
the construction of projects that do not require the issuance of a
building permit or the issuance of a certificate of occupancy and
that are necessary to remediate conditions at a hazardous waste
facility, solid waste facility, or other location at which the
director of environmental protection has reason to believe there
is a substantial threat to public health or safety or the
environment. These contracts shall be made and entered into by the
directors of public safety, job and family services, mental
health, developmental disabilities, rehabilitation and correction,
and youth services, the administrator of workers' compensation,
the rehabilitation services commission, the boards of trustees of
such institutions, and the director of environmental protection,
respectively. All such contracts may be in whole or in part on
unit price basis of maximum estimated cost, with payment computed
and made upon actual quantities or units.

(4) To prepare and suggest comprehensive plans for the
development of grounds and buildings under the control of a state
agency;

(5) To acquire, by purchase, gift, devise, lease, or grant,
all real estate required by a state agency, in the exercise of
which power the department may exercise the power of eminent
domain, in the manner provided by sections 163.01 to 163.22 of the
Revised Code;

(6) To make and provide all plans, specifications, and models
for the construction and perfection of all systems of sewerage,
drainage, and plumbing for the state in connection with buildings
and grounds under the control of a state agency;

(7) To erect, supervise, and maintain all public monuments
and memorials erected by the state, except where the supervision
and maintenance is otherwise provided by law;

(8) To procure, by lease, storage accommodations for a state
agency;

(9) To lease or grant easements or licenses for unproductive
and unused lands or other property under the control of a state
agency. Such leases, easements, or licenses shall be granted for a
period not to exceed fifteen years and shall be executed for the
state by the director of administrative services and the governor
and shall be approved as to form by the attorney general, provided
that leases, easements, or licenses may be granted to any county,
township, municipal corporation, port authority, water or sewer
district, school district, library district, health district, park
district, soil and water conservation district, conservancy
district, or other political subdivision or taxing district, or
any agency of the United States government, for the exclusive use
of that agency, political subdivision, or taxing district, without
any right of sublease or assignment, for a period not to exceed
fifteen years, and provided that the director shall grant leases,
easements, or licenses of university land for periods not to
exceed twenty-five years for purposes approved by the respective
university's board of trustees wherein the uses are compatible
with the uses and needs of the university and may grant leases of
university land for periods not to exceed forty years for purposes
approved by the respective university's board of trustees pursuant
to section 123.77 of the Revised Code.

(10) To lease space for the use of a state agency;

(11) To have general supervision and care of the storerooms,
offices, and buildings leased for the use of a state agency;

(12) To exercise general custodial care of all real property
of the state;

(13) To assign and group together state offices in any city
in the state and to establish, in cooperation with the state
agencies involved, rules governing space requirements for office
or storage use;

(14) To lease for a period not to exceed forty years,
pursuant to a contract providing for the construction thereof
under a lease-purchase plan, buildings, structures, and other
improvements for any public purpose, and, in conjunction
therewith, to grant leases, easements, or licenses for lands under
the control of a state agency for a period not to exceed forty
years. The lease-purchase plan shall provide that at the end of
the lease period, the buildings, structures, and related
improvements, together with the land on which they are situated,
shall become the property of the state without cost.

(a) Whenever any building, structure, or other improvement is
to be so leased by a state agency, the department shall retain
either basic plans, specifications, bills of materials, and
estimates of cost with sufficient detail to afford bidders all
needed information or, alternatively, all of the following plans,
details, bills of materials, and specifications:

(i) Full and accurate plans suitable for the use of mechanics
and other builders in the improvement;

(ii) Details to scale and full sized, so drawn and
represented as to be easily understood;

(iii) Accurate bills showing the exact quantity of different
kinds of material necessary to the construction;

(iv) Definite and complete specifications of the work to be
performed, together with such directions as will enable a
competent mechanic or other builder to carry them out and afford
bidders all needed information;

(v) A full and accurate estimate of each item of expense and
of the aggregate cost thereof.

(b) The department shall give public notice, in such
newspaper, in such form, and with such phraseology as the director
of administrative services prescribes, published once each week
for four consecutive weeks, of the time when and place where bids
will be received for entering into an agreement to lease to a
state agency a building, structure, or other improvement. The last
publication shall be at least eight days preceding the day for
opening the bids. The bids shall contain the terms upon which the
builder would propose to lease the building, structure, or other
improvement to the state agency. The form of the bid approved by
the department shall be used, and a bid is invalid and shall not
be considered unless that form is used without change, alteration,
or addition. Before submitting bids pursuant to this section, any
builder shall comply with Chapter 153. of the Revised Code.

(c) On the day and at the place named for receiving bids for
entering into lease agreements with a state agency, the director
of administrative services shall open the bids and shall publicly
proceed immediately to tabulate the bids upon duplicate sheets. No
lease agreement shall be entered into until the bureau of workers'
compensation has certified that the person to be awarded the lease
agreement has complied with Chapter 4123. of the Revised Code,
until, if the builder submitting the lowest and best bid is a
foreign corporation, the secretary of state has certified that the
corporation is authorized to do business in this state, until, if
the builder submitting the lowest and best bid is a person
nonresident of this state, the person has filed with the secretary
of state a power of attorney designating the secretary of state as
its agent for the purpose of accepting service of summons in any
action brought under Chapter 4123. of the Revised Code, and until
the agreement is submitted to the attorney general and the
attorney general's approval is certified thereon. Within thirty
days after the day on which the bids are received, the department
shall investigate the bids received and shall determine that the
bureau and the secretary of state have made the certifications
required by this section of the builder who has submitted the
lowest and best bid. Within ten days of the completion of the
investigation of the bids, the department shall award the lease
agreement to the builder who has submitted the lowest and best bid
and who has been certified by the bureau and secretary of state as
required by this section. If bidding for the lease agreement has
been conducted upon the basis of basic plans, specifications,
bills of materials, and estimates of costs, upon the award to the
builder the department, or the builder with the approval of the
department, shall appoint an architect or engineer licensed in
this state to prepare such further detailed plans, specifications,
and bills of materials as are required to construct the building,
structure, or improvement. The department shall adopt such rules
as are necessary to give effect to this section. The department
may reject any bid. Where there is reason to believe there is
collusion or combination among bidders, the bids of those
concerned therein shall be rejected.

(15) To acquire by purchase, gift, devise, or grant and to
transfer, lease, or otherwise dispose of all real property
required to assist in the development of a conversion facility as
defined in section 5709.30 of the Revised Code as that section
existed before its repeal by Amended Substitute House Bill 95 of
the 125th general assembly;

(16) To lease for a period not to exceed forty years,
notwithstanding any other division of this section, the
state-owned property located at 408-450 East Town Street,
Columbus, Ohio, formerly the state school for the deaf, to a
developer in accordance with this section. "Developer," as used in
this section, has the same meaning as in section 123.77 of the
Revised Code.

Such a lease shall be for the purpose of development of the
land for use by senior citizens by constructing, altering,
renovating, repairing, expanding, and improving the site as it
existed on June 25, 1982. A developer desiring to lease the land
shall prepare for submission to the department a plan for
development. Plans shall include provisions for roads, sewers,
water lines, waste disposal, water supply, and similar matters to
meet the requirements of state and local laws. The plans shall
also include provision for protection of the property by insurance
or otherwise, and plans for financing the development, and shall
set forth details of the developer's financial responsibility.

The department may employ, as employees or consultants,
persons needed to assist in reviewing the development plans. Those
persons may include attorneys, financial experts, engineers, and
other necessary experts. The department shall review the
development plans and may enter into a lease if it finds all of
the following:

(a) The best interests of the state will be promoted by
entering into a lease with the developer;

(b) The development plans are satisfactory;

(c) The developer has established the developer's financial
responsibility and satisfactory plans for financing the
development.

The lease shall contain a provision that construction or
renovation of the buildings, roads, structures, and other
necessary facilities shall begin within one year after the date of
the lease and shall proceed according to a schedule agreed to
between the department and the developer or the lease will be
terminated. The lease shall contain such conditions and
stipulations as the director considers necessary to preserve the
best interest of the state. Moneys received by the state pursuant
to this lease shall be paid into the general revenue fund. The
lease shall provide that at the end of the lease period the
buildings, structures, and related improvements shall become the
property of the state without cost.

(17) To lease to any person any tract of land owned by the
state and under the control of the department, or any part of such
a tract, for the purpose of drilling for or the pooling of oil or
gas. Such a lease shall be granted for a period not exceeding
forty years, with the full power to contract for, determine the
conditions governing, and specify the amount the state shall
receive for the purposes specified in the lease, and shall be
prepared as in other cases.

(18) To manage the use of space owned and controlled by the
department, including space in property under the jurisdiction of
the Ohio building authority, by doing all of the following:

(b) Periodically in the discretion of the director of
administrative services:

(i) Requiring each state agency to categorize the use of
space allotted to the agency between office space, common areas,
storage space, and other uses, and to report its findings to the
department;

(ii) Creating and updating a master space utilization plan
for all space allotted to state agencies. The plan shall
incorporate space utilization metrics.

(iii) Conducting a cost-benefit analysis to determine the
effectiveness of state-owned buildings;

(iv) Assessing the alternatives associated with consolidating
the commercial leases for buildings located in Columbus.

(c) Commissioning a comprehensive space utilization and
capacity study in order to determine the feasibility of
consolidating existing commercially leased space used by state
agencies into a new state-owned facility.

(B) This section and section 125.02 of the Revised Code shall
not interfere with any of the following:

(1) The power of the adjutant general to purchase military
supplies, or with the custody of the adjutant general of property
leased, purchased, or constructed by the state and used for
military purposes, or with the functions of the adjutant general
as director of state armories;

(2) The power of the director of transportation in acquiring
rights-of-way for the state highway system, or the leasing of
lands for division or resident district offices, or the leasing of
lands or buildings required in the maintenance operations of the
department of transportation, or the purchase of real property for
garage sites or division or resident district offices, or in
preparing plans and specifications for and constructing such
buildings as the director may require in the administration of the
department;

(3) The power of the director of public safety and the
registrar of motor vehicles to purchase or lease real property and
buildings to be used solely as locations to which a deputy
registrar is assigned pursuant to division (B) of section 4507.011
of the Revised Code and from which the deputy registrar is to
conduct the deputy registrar's business, the power of the director
of public safety to purchase or lease real property and buildings
to be used as locations for division or district offices as
required in the maintenance of operations of the department of
public safety, and the power of the superintendent of the state
highway patrol in the purchase or leasing of real property and
buildings needed by the patrol, to negotiate the sale of real
property owned by the patrol, to rent or lease real property owned
or leased by the patrol, and to make or cause to be made repairs
to all property owned or under the control of the patrol;

(4) The power of the division of liquor control in the
leasing or purchasing of retail outlets and warehouse facilities
for the use of the division;

(5) The power of the director of development to enter into
leases of real property, buildings, and office space to be used
solely as locations for the state's foreign offices to carry out
the purposes of section 122.05 of the Revised Code;

(6) The power of the director of environmental protection to
enter into environmental covenants, to grant and accept easements,
or to sell property pursuant to division (G) of section 3745.01 of
the Revised Code.

(C) Purchases for, and the custody and repair of, buildings
under the management and control of the capitol square review and
advisory board, the rehabilitation services commission, the bureau
of workers' compensation, or the departments of public safety, job
and family services, mental health, developmental disabilities,
and rehabilitation and correction, and buildings of educational
and benevolent institutions under the management and control of
boards of trustees, are not subject to the control and
jurisdiction of the department of administrative services.

(D) Any instrument by which real property is acquired
pursuant to this section shall identify the agency of the state
that has the use and benefit of the real property as specified in
section 5301.012 of the Revised Code.

Sec. 131.50. (A) There is hereby created in the state
treasury the state land royalty fund consisting of money credited
to it under section 1509.73 of the Revised Code. Any investment
proceeds earned on money in the fund shall be credited to the fund
and used as required in division (B) of this section.

(B) Money in the state land royalty fund shall be used by
state agencies to acquire land and to pay capital costs of state
agencies, including equipment and renovations and repairs of
facilities, that have contributed to the fund under section
1509.73 of the Revised Code. Such a state agency is entitled to
receive from the fund the amount that the state agency contributed
and a share of the investment earnings of the fund in an amount
that is equivalent to the proportionate share of contributions
made by the state agency to the fund.

(C) As used in this section, "state agency" has the same
meaning as in section 1509.70 of the Revised Code.

Sec. 1503.012. There is hereby created in the state treasury
the forestry mineral royalties fund. The fund shall consist of
money deposited into it under section 1509.73 of the Revised Code.
Any investment proceeds earned on money in the fund shall be
credited to the fund.

Money in the fund shall be used by the division of forestry
to acquire land and to pay capital costs, including equipment and
repairs and renovations of facilities, that are owned by the state
and administered by the division. Expenditures from the fund shall
be approved by the director of natural resources.

Sec. 1509.70. As used in sections 1509.70 to 1509.77 of the
Revised Code:

(A) "Class 1 property" means property owned or controlled by
a state agency concerning which there are no encumbrances or deed
restrictions that limit the exploration or drilling for oil or gas
on the property.

(B) "Class 2 property" means property that is owned or
controlled by a state university or college or that is owned or
controlled by another state agency concerning which there is a
federal encumbrance or monetary interest that limits or prohibits
the exploration or drilling for oil or gas on the property.

(C) "Class 3 property" means property owned or controlled by
a state agency to which all of the following apply:

(1) The property is not a class 2 or class 4 property.

(2) The property is of insufficient size or shape to meet the
requirements for drilling a well on the property established under
section 1509.24 or 1509.25 of the Revised Code.

(3) The property is necessary for pooling with other parcels
of property for the purpose of forming a drilling unit in order to
meet the requirements for drilling a well established under
section 1509.24 or 1509.25 of the Revised Code.

(D) "Class 4 property" means property owned or controlled by
a state agency concerning which there is a provision in the deed
that limits the exploration or drilling for oil or gas on the
property.

(E) "Formation" means any of the following:

(1) The distance from the surface of the land to the top of
the Onondaga limestone;

(2) The distance from the top of the Onondaga limestone to
the bottom of the Queenston formation;

(3) The distance from the bottom of the Queenston formation
to the top of the Trenton limestone;

(4) The distance from the top of the Trenton limestone to the
top of the Knox formation;

(5) The distance from the top of the Knox formation to the
basement rock.

(F) "State agency" means both of the following:

(1) "State agency" as defined in section 1.60 of the Revised
Code;

(2) "State university or college" as defined in section
3345.12 of the Revised Code.

Sec. 1509.71. (A) It is the policy of the state to provide
access to and support the exploration for, development of, and
production of oil and natural gas resources owned or controlled by
the state in an effort to use the state's natural resources
responsibly.

(B) There is hereby created the oil and gas leasing
commission consisting of the chief of the division of geological
survey and the following four members appointed by the governor:

(1) Two members from a list of not less than four persons
recommended by a statewide organization representing the oil and
gas industry;

(2) One member of the public with expertise in finance or
real estate;

(3) One member representing a statewide environmental or
conservation organization.

(C) Initial appointments shall be made to the commission not
later than thirty days after the effective date of this section.
Of the initial members appointed to the commission, one shall
serve a term of two years, one shall serve a term of three years,
one shall serve a term of four years, and one shall serve a term
of five years. Thereafter, terms of office of members shall be for
five years from the date of appointment. Each member appointed by
the governor shall hold office from the date of appointment until
the end of the term for which the member was appointed. The
governor shall fill a vacancy occurring on the commission by
appointing a member within sixty days after the vacancy occurs. A
member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of that term. A
member shall continue in office subsequent to the expiration date
of the member's term until the member's successor takes office, or
until a period of sixty days has elapsed, whichever occurs first.

(D) Three members constitute a quorum of the commission, and
no action of the commission is valid unless it has the concurrence
of at least three members. The commission shall keep a record of
its proceedings. The chief of the division of geological survey
shall serve as the chairperson of the commission.

(E) The governor may remove an appointed member from the
commission for inefficiency, malfeasance, misfeasance, or
nonfeasance.

(F) Members of the commission shall receive no compensation,
but shall be reimbursed for their actual and necessary expenses
incurred in the course of the performance of their duties as
members of the commission.

(G) The department of natural resources shall furnish
clerical, technical, legal, and other services required by the
commission in the performance of its duties.

Sec. 1509.72. (A) A state agency shall submit to the oil and
gas leasing commission an inventory of each parcel of land that is
owned or controlled by the agency. The inventory shall classify
each parcel as a class 1, class 2, class 3, or class 4 property.
The commission may request a state agency to submit documentation
supporting the classification of each parcel of land.

(B) Not later than ninety days after the acquisition of a
parcel of state land occurring after the effective date of this
section, the state agency that owns or controls the parcel shall
classify the parcel in the same manner that parcels are classified
under division (A) of this section.

(C) The department of natural resources shall post on the
department's web site a listing of each parcel of state land and
the classification assigned to the parcel under this section. The
commission shall provide to the department the information
necessary for the department to comply with this division.

(D) Not later than two hundred seventy days after the
effective date of this section, the director of natural resources
shall adopt rules in accordance with Chapter 119. of the Revised
Code establishing procedures and requirements for publishing
notice on the department's web site of each nomination received by
the commission under section 1509.73 of the Revised Code for a
period of not less than twenty-one days prior to the commission's
approval or disapproval of each nomination. The notification shall
identify the parcel of land that is the subject of a nomination
and include a statement that a person may submit comments to the
commission concerning the nomination. The commission shall provide
to the department the information necessary for the department to
comply with this division.

Sec. 1509.73. (A)(1) Beginning on the effective date of this
section and ending on the effective date of the rules adopted
under section 1509.74 of the Revised Code, a state agency, in
consultation with the oil and gas leasing commission, may lease a
formation within a parcel of land that is owned or controlled by
the state agency for the exploration for and development and
production of oil or natural gas. The state agency shall establish
bid fees, signing fees, rentals, and at least a one-eighth
landowner royalty. On and after the effective date of the rules
adopted under section 1509.74 of the Revised Code, a formation
within a parcel of land that is owned or controlled by a state
agency may be leased for the exploration for and development and
production of oil or natural gas only in accordance with divisions
(A)(2) to (H) of this section and those rules.

(2) Not earlier than two hundred seventy days after the
effective date of this section, a person that is an owner and that
is interested in leasing a formation within a parcel of land that
is owned or controlled by a state agency for the exploration for
and the development and production of oil or natural gas may
submit to the oil and gas leasing commission a nomination that
identifies the parcel of land. A person submitting a nomination
shall submit it in the manner and form established in rules
adopted under section 1509.74 of the Revised Code and shall
include with the nomination both of the following:

(a) The information required by those rules;

(b) The nomination fee established in those rules.

(B)(1) Not less than thirty days, but not more than one
hundred twenty days following the receipt of a nomination of a
parcel of land, the commission shall conduct a meeting for the
purpose of determining whether to approve or disapprove the
nomination for the purpose of leasing a formation within the
parcel of land that is identified in the nomination. The
commission also shall review the nomination of the parcel of land
and determine if the parcel of land has been classified under
section 1509.72 of the Revised Code. If the parcel of land that is
the subject of the nomination has not been classified, the
commission immediately shall send a copy of the nomination to the
state agency that owns or controls the parcel that is the subject
of the nomination. Not later than fifteen days after receipt of a
copy of the nomination, the state agency shall classify the parcel
of land as a class 1, class 2, class 3, or class 4 property and
submit the classification to the commission. On receipt of the
state agency's classification of the parcel of land, the
commission shall provide the department of natural resources the
information necessary for the department to comply with divisions
(C) and (D) of section 1509.72 of the Revised Code.

After a parcel of land that is the subject of a nomination
has been classified under section 1509.72 of the Revised Code or
division (B)(1) of this section, as applicable, the commission
shall approve or disapprove the nomination. In making its decision
to approve or disapprove the nomination of the parcel of land, the
commission shall consider all of the following:

(a) The economic benefits, including the potential income
from an oil or natural gas operation, that would result if the
lease of a formation that is the subject of the nomination were
approved;

(b) Whether the proposed oil or gas operation is compatible
with the current uses of the parcel of land that is the subject of
the nomination;

(c) The environmental impact that would result if the lease
of a formation that is the subject of the nomination were
approved;

(d) Any potential adverse geological impact that would result
if the lease of a formation that is the subject of the nomination
were approved;

(e) Any potential impact to visitors or users of a parcel of
land that is the subject of the nomination;

(f) Any potential impact to the operations or equipment of a
state agency that is a state university or college if the lease of
a formation within a parcel of land owned or controlled by the
university or college that is the subject of the nomination were
executed;

(g) Any objections to the nomination submitted to the
commission by the state agency that owns or controls the land on
which the proposed oil or natural gas operation would take place;

(h) Any comments or objections to the nomination submitted to
the commission by residents of this state or other users of the
parcel of land that is the subject of the nomination;

(i) Any other factors that the commission establishes in
rules adopted under section 1509.74 of the Revised Code.

(2) The commission shall disapprove a nomination of a parcel
of land that is a class 3 property. The commission shall send
notice of the disapproval by certified mail to the person that
submitted the nomination.

(3) Prior to making its decision to approve or disapprove a
nomination, the commission shall notify the state agency that owns
or controls the land on which the oil or gas operation would take
place.

(4) The commission shall approve or disapprove a nomination
not later than two calendar quarters following the receipt of the
nomination. Notice of the decision of the commission shall be sent
by certified mail to the person that submitted the nomination.

(5) If the commission approves a nomination, the commission
shall notify the state agency that owns or controls the parcel of
land that is the subject of a nomination of the commission's
approval of the nomination. The notification shall request the
state agency to submit to the commission special terms and
conditions that will apply to the lease of a formation within the
parcel of land because of specific conditions related to the
parcel of land. The state agency shall submit the special terms
and conditions not later than sixty days after receipt of a notice
from the commission.

(6) If the commission approves a nomination for a parcel of
land that is a class 1 property, the commission shall offer for
lease each formation that is within the parcel of land. If the
commission approves a nomination for a parcel of land that is a
class 2 or class 4 property, the commission shall not offer for
lease any formation that is within the parcel of land unless the
state agency that owns or controls the parcel of land notifies the
commission that a formation or formations that are within the
parcel of land may be offered for lease.

(C) Each calendar quarter, the commission shall proceed to
advertise for bids for a lease for a formation within a parcel of
land that was the subject of a nomination approved during the
previous calendar quarter that is a class 1 property or that is a
class 2 or class 4 property for which the commission has received
notice from the state agency that owns or controls the parcel of
land under division (B)(6) of this section that a formation or
formations that are within the parcel of land may be offered for
lease. The advertisement shall be provided to the department of
natural resources, and the department shall publish the
advertisement on its web site for a period of time established by
the commission. The advertisement shall include all of the
following:

(1) The procedure for the submission of a bid to enter into a
lease for a formation within a parcel of land;

(2) A statement that a standard lease form that is consistent
with the practices of the oil and natural gas industries will be
used for the lease of a formation within the parcel of land;

(3) A copy of the standard lease form that will be used for
the lease of a formation within the parcel of land;

(4) Special terms and conditions, if applicable, that apply
to the lease because of specific conditions related to the parcel
of land;

(5) The amount of the bid fee that is required to be
submitted with a bid;

(6) Any other information that the commission considers
pertinent to the advertisement for bids.

(D) A person submitting a bid to enter into a lease under
this section shall pay a bid fee established in rules adopted
under section 1509.74 of the Revised Code.

(E) In order to encourage the submission of bids and the
responsible and reasonable development of the state's natural
resources, the information that is contained in a bid submitted to
the commission under this section shall be confidential and shall
not be disclosed before a person is selected under division (F) of
this section unless the commission determines otherwise.

(F) The commission shall establish a deadline for the
submission of bids for each lease regarding a particular parcel of
land and shall notify the department of the deadline. The
department shall post the deadline for the submission of bids for
each lease on the department's web site. A person shall submit a
bid in accordance with the procedures and requirements established
by the commission in rules adopted under section 1509.74 of the
Revised Code.

The commission shall select the person who submits the
highest and best bid for each formation within that parcel of
land, taking into account the financial responsibility of the
prospective lessee and the ability of the prospective lessee to
perform its obligations under the lease. After the commission
selects a person, the commission shall notify the applicable state
agency and send the person's bid to the agency. The state agency
shall enter into a lease with the person selected by the
commission.

(G)(1) Except as otherwise provided in division (G)(2) of
this section, all money received by a state agency from signing
fees, rentals, and royalty payments for leases entered into under
this section shall be paid by the state agency into the state
treasury to the credit of the state land royalty fund created in
section 131.50 of the Revised Code.

(2) Money received by a state agency from signing fees,
rentals, and royalty payments for leases entered into under this
section on land owned or controlled by the division of forestry,
wildlife, or parks and recreation in the department of natural
resources shall be deposited into one of the following funds, as
applicable:

(a) The forestry mineral royalties fund created in section
1503.012 of the Revised Code if the lease pertains to land owned
or controlled by the division of forestry;

(b) The wildlife habitat fund created in section 1531.33 of
the Revised Code if the lease pertains to land owned or controlled
by the division of wildlife;

(c) The parks mineral royalties fund created in section
1541.26 of the Revised Code if the lease pertains to land owned or
controlled by the division of parks and recreation.

(H) All money received from nomination fees and bid fees
shall be paid into the state treasury to the credit of the oil and
gas leasing commission administration fund created in section
1509.75 of the Revised Code.

(I) Notwithstanding any other provision of this section to
the contrary, a nature preserve as defined in section 1517.01 of
the Revised Code that is owned or controlled by a state agency
shall not be nominated or leased under this section for the
purpose of exploring for and developing and producing oil and
natural gas resources.

Sec. 1509.74. Not later than two hundred seventy days after
the effective date of this section, the oil and gas leasing
commission shall adopt rules in accordance with Chapter 119. of
the Revised Code establishing all of the following:

(A) The form of and the information to be included in
nominations that are submitted under section 1509.73 of the
Revised Code;

(B) Procedures for the submission of nominations to the
commission and the amount of nomination fees to be charged. The
rules shall require that if a person who has paid a nomination fee
does not enter into a lease regarding the parcel of land that the
person nominated, the fee shall be refunded to the person, and, if
applicable, the person that enters into the lease shall pay the
nomination fee. In addition, the rules shall provide that a state
agency is exempt from nomination fees and that a person who enters
into a lease regarding a parcel of land nominated by a state
agency shall pay the nomination fee.

(C) Factors that the commission may consider when determining
whether to approve or disapprove a nomination submitted under
section 1509.73 of the Revised Code;

(D) Procedures and requirements for the submission of bids
for a lease under section 1509.73 of the Revised Code;

(E) The amount of bid fees to be charged for the submission
of bids to enter into leases under section 1509.73 of the Revised
Code;

(F) A standard lease form that is consistent with the
practices of the oil and natural gas industries and that contains
at least a one-eighth landowner royalty, which standard lease form
shall be used by a state agency for leases entered into under
section 1509.73 of the Revised Code;

(G) Any other procedures and requirements that the commission
determines necessary to implement sections 1509.70 to 1509.77 of
the Revised Code.

Sec. 1509.75. There is hereby created in the state treasury
the oil and gas leasing commission administration fund consisting
of the proceeds of nomination fees and bid fees credited to it
under section 1509.73 of the Revised Code. Money in the fund shall
be used by the oil and gas leasing commission and the department
of natural resources to pay the administrative expenses of the
commission and the department regarding the implementation of
sections 1509.70 to 1509.77 of the Revised Code. Money in the fund
also shall be used to pay the actual and necessary expenses
incurred by members of the commission in the course of the
performance of their duties.

Sec. 1509.76. A state agency that has classified a parcel of
land as a class 2 property under section 1509.72 or 1509.73 of the
Revised Code shall make reasonable and appropriate efforts so that
the parcel of land could be classified as a class 1 property.

Sec. 1509.77. A state agency that owns or controls a parcel
of land that is a class 3 property for which a nomination for that
land has been denied under section 1509.73 of the Revised Code may
enter into written agreements to use that parcel of land to form a
drilling unit that conforms to the minimum acreage and distance
requirements established under section 1509.24 or 1509.25 of the
Revised Code.

Sec. 1509.78. Notwithstanding any other provision of the
Revised Code, not less than thirty per cent of the proceeds from a
lease executed on and after the effective date of this section for
the exploration and production of oil or gas within or under a
state park established under Chapter 1541. of the Revised Code
shall be credited to the applicable fund created in the state
treasury that supports the state park. The department of natural
resources shall use the money credited to the applicable fund from
a lease for expenses associated with the state park within or
under which the oil or gas exploration and production occurred.
Money credited shall be used for capital improvements.

Sec. 1531.06. (A) The chief of the division of wildlife,
with the approval of the director of natural resources, may
acquire by gift, lease, purchase, or otherwise lands or surface
rights upon lands and waters or surface rights upon waters for
wild animals, fish or game management, preservation, propagation,
and protection, outdoor and nature activities, public fishing and
hunting grounds, and flora and fauna preservation. The chief, with
the approval of the director, may receive by grant, devise,
bequest, donation, or assignment evidences of indebtedness, the
proceeds of which are to be used for the purchase of such lands or
surface rights upon lands and waters or surface rights upon
waters.

(B)(1) The chief shall adopt rules for the protection of
state-owned or leased lands and waters and property under the
control of the division of wildlife against wrongful use or
occupancy that will ensure the carrying out of the intent of this
section, protect those lands, waters, and property from
depredations, and preserve them from molestation, spoilation,
destruction, or any improper use or occupancy thereof, including
rules with respect to recreational activities and for the
government and use of such lands, waters, and property.

(2) The chief may adopt rules benefiting wild animals, fish
or game management, preservation, propagation, and protection,
outdoor and nature activities, public fishing and hunting grounds,
and flora and fauna preservation, and regulating the taking and
possession of wild animals on any lands or waters owned or leased
or under the division's supervision and control and, for a
specified period of years, may prohibit or recall the taking and
possession of any wild animal on any portion of such lands or
waters. The division clearly shall define and mark the boundaries
of the lands and waters owned or leased or under its supervision
and control upon which the taking of any wild animal is
prohibited.

(C) The chief, with the approval of the director, may acquire
by gift, lease, or purchase land for the purpose of establishing
state fish hatcheries and game farms and may erect on it buildings
or structures that are necessary.

The title to or lease of such lands and waters shall be taken
by the chief in the name of the state. The lease or purchase price
of all such lands and waters may be paid from hunting and trapping
and fishing licenses and any other funds.

(D) To provide more public recreation, stream and lake
agreements for public fishing only may be obtained under rules
adopted by the chief.

(E) The chief, with the approval of the director, may
establish user fees for the use of special public facilities or
participation in special activities on lands and waters
administered by the division. The special facilities and
activities may include hunting or fishing on special designated
public lands and waters intensively managed or stocked with
artificially propagated game birds or fish, field trial
facilities, wildlife nature centers, firearm ranges, boat mooring
facilities, camping sites, and other similar special facilities
and activities. The chief shall determine whether the user fees
are refundable and shall ensure that that information is provided
at the time the user fees are paid.

(F) The chief, with the approval of the director, may enter
into lease agreements for rental of concessions or other special
projects situated on state-owned or leased lands or waters or
other property under the division's control. The chief shall set
and collect the fees for concession rentals or other special
projects; regulate through contracts between the division and
concessionaires the sale of tangible objects at concessions or
other special projects; and keep a record of all such fee payments
showing the amount received, from whom received, and for what
purpose the fee was collected.

(G) The chief may sell or donate conservation-related items
or items that promote wildlife conservation, including, but not
limited to, stamps, pins, badges, books, bulletins, maps,
publications, calendars, and any other educational article or
artifact pertaining to wild animals; sell confiscated or forfeited
items; and sell surplus structures and equipment, and timber or
crops from lands owned, administered, leased, or controlled by the
division. The chief, with the approval of the director, also may
engage in campaigns and special events that promote wildlife
conservation by selling or donating wildlife-related materials,
memberships, and other items of promotional value.

(H) The chief may sell, lease, or transfer minerals or
mineral rights, with the approval of the director, when the chief
and the director determine it to be in the best interest of the
state. Upon approval of the director, the chief may make, execute,
and deliver contracts, including leases, to mine, drill, or
excavate iron ore, stone, coal, petroleum, gas, salt, and other
minerals, other than oil or gas, upon and under lands owned by the
state and administered by the division to any person who complies
with the terms of such a contract. No such contract shall be valid
for more than fifty years from its effective date. Consideration
for minerals and mineral rights shall be by rental or royalty
basis as prescribed by the chief and payable as prescribed by
contract. Moneys collected under this division shall be paid into
the state treasury to the credit of the wildlife habitat fund
created in section 1531.33 of the Revised Code. Contracts entered
into under this division also may provide for consideration for
minerals or mineral rights in the form of acquisition of lands as
provided under divisions (A) and (C) of this section.

(I) All moneys received under divisions (E), (F), and (G) of
this section shall be paid into the state treasury to the credit
of a fund that shall be used for the purposes outlined in section
1533.15 of the Revised Code and for the management of other wild
animals for their ecological and nonconsumptive recreational value
or benefit.

(J) The chief, with the approval of the director, may barter
or sell wild animals to other states, state or federal agencies,
and conservation or zoological organizations. Moneys received from
the sale of wild animals shall be deposited into the wild animal
fund created in section 1531.34 of the Revised Code.

(K) The chief shall adopt rules establishing standards and
guidelines for the administration of contraceptive chemicals to
noncaptive wild animals. The rules may specify chemical delivery
methods and devices and monitoring requirements.

The chief shall establish criteria for the issuance of and
shall issue permits for the administration of contraceptive
chemicals to noncaptive wild animals. No person shall administer
contraceptive chemicals to noncaptive wild animals without a
permit issued by the chief.

(L) All fees set by the chief under this section shall be
approved by the wildlife council.

(M) Information contained in the wildlife diversity database
that is established pursuant to division (B)(2) of this section
and section 1531.25 of the Revised Code may be made available to
any individual or public or private agency for research,
educational, environmental, land management, or other similar
purposes that are not detrimental to the conservation of a species
or feature. Information regarding sensitive site locations of
species that are listed pursuant to section 1531.25 of the Revised
Code and of features that are included in the wildlife diversity
database is not subject to section 149.43 of the Revised Code if
the chief determines that the release of the information could be
detrimental to the conservation of a species or feature.

Sec. 1531.33. The wildlife habitat fund is hereby created in
the state treasury. The fund shall consist of the investment
earnings of the wildlife habitat trust fund created in section
1531.32 of the Revised Code; gifts, donations, bequests, and other
moneys contributed to the division of wildlife for the purposes of
the fund; moneys collected under division (H) of section 1531.06
of the Revised Code; moneys deposited in the fund under division
(G)(2)(b) of section 1509.73 of the Revised Code; and moneys
received by the division pursuant to negotiated mitigation
settlements from persons who have adversely affected fish and
wildlife, or their habitats, over which the division has
jurisdiction under this chapter or Chapter 1533. of the Revised
Code other than fish and wildlife of the Ohio river or their
habitats.

The fund shall be used by the division to acquire and develop
lands for the preservation, propagation, and protection of wild
animals. All expenditures from the wildlife habitat fund shall be
approved by the director of natural resources. Quarterly each
fiscal year, the treasurer of state shall transfer the investment
earnings of the wildlife habitat trust fund to the wildlife
habitat fund.

Sec. 1541.26. There is hereby created in the state treasury
the parks mineral royalties fund. The fund shall consist of money
deposited into it under section 1509.73 of the Revised Code. Any
investment proceeds earned on money in the fund shall be credited
to the fund.

Money in the fund shall be used by the division of parks and
recreation to acquire land and to pay capital costs, including
equipment and repairs and renovations of facilities, that are
owned by the state and administered by the division. Expenditures
from the fund shall be approved by the director of natural
resources.

Sec. 3345.181. (A) The board of trustees of a state
university, by majority vote, may make, execute, and deliver
contracts or leases to mine minerals upon lands under the
supervision of suchthe board, to any person or public entity that
complies with the terms prescribed by the board. Such contracts or
leases shall not operate as a conveyance of the fee to any part of
the realty.

(B) A board, by majority vote, may make expenditures and may
enter into contracts with any person or public entity for the
purposes of investigating, exploring, prospecting, or drilling for
petroleum and gas and the constituent components and mineral
by-products thereof upon lands under the supervision of such
board, and for the purposes of extracting, producing, selling,
using, or transporting such petroleum, gas, components, and
byproducts.

(C) The board may use the proceeds derived from its actions
under division (A) or (B) of this section for the furthering of
any of the purposes of the university.

Section 2. That existing sections 123.01, 1531.06, 1531.33,
and 3345.181 and sections
5119.40, 5120.12, and 5123.23 of the
Revised Code are hereby repealed.

Section 3. A lease entered into under division (B) of
section 3345.181 or section 123.01, 1531.06, 5119.40, 5120.12, or
5123.23 of the Revised Code as those sections existed prior to
their amendment or repeal by this act shall remain in effect until
the term of the lease expires as provided in the lease.

Section 4. Section 123.01 of the Revised Code is presented in
this act as a composite of the section as amended by both Am. Sub.
H.B. 1 and Sub. S.B. 79 of the 128th General Assembly. The General
Assembly, applying the principle stated in division (B) of section
1.52 of the Revised Code that amendments are to be harmonized if
reasonably capable of simultaneous operation, finds that the
composite is the resulting version of the section in effect prior
to the effective date of the section as presented in this act.